Georgia Power working out power deals with biomass projects

Georgia Power told the Georgia Public Service Commission on May 9 in a brief letter that it is executing certain contracts for the purchase of firm capacity and energy from renewable qualifying facilities utilizing the proxy unit methodology.

The first contract, executed on April 29 with Fort Gaines Energy LLC, will provide Georgia Power with 50 MW of capacity and energy from Fort Gaines’s qualifying facility generator located in Clay County, Ga.

The second contract, which will be executed on May 13 with Green Power Solutions of Georgia LLC, will provide Georgia Power with 56 MW of capacity and energy from Green Power Solutions’ qualifying facility generator located in Dublin, Ga.

These QF proxy contracts will meet a portion of the need identified in Georgia Power’s 2015 Request for Proposals, the utility noted.

Georgia Power, a unit of Southern Co. (NYSE: SO), is asking the commission to approve these QF proxy contracts. Trade secret copies of the contracts have been provided to the commission staff.

No further project details were given in the May 9 public filing.

In December 2012, Georgia Gov. Nathan Deal announced that Green Power Solutions will open a 56-MW, biomass-fueled power plant at Dublin in Laurens County, creating 35 permanent jobs with an initial capital investment of $95m. The governor said this power will be sold to Georgia Power under a 20-year power purchase agreement.

Turning to the other project, said a Feb. 27 air permitting document from the Georgia Environmental Protection Division: “On November 26, 2012, Fort Gaines Energy, LLC (hereafter Fort Gaines) submitted an application for an air quality permit to construct and operate a 57-megawatt (Mw) biomass-fired power plant. The facility will be located at Georgia Highway 39 in Fort Gaines, Clay County. The proposed project will include: a fluidized bed boiler with a total heat input capacity of 660 million British Thermal Units (Btu) per hour firing woody biomass, de-wired tire derived fuel (TDF) at 10% on a Btu basis, and natural gas at 10% on an annual capacity factor basis (or low sulfur diesel fuel for startup purposes when natural gas is not available); a 1,500 kilowatt diesel-fired emergency generator; and a 345 horsepower diesel-fired emergency firewater pump. … The proposed facility will be called Fort Gaines Plant. This facility is to be located in the same location as the previously proposed Yellow Pine Energy LLC facility (discussed below) which was never constructed.”

The EPD added about the prior project: “On October 1, 2007, Yellow Pine Energy Company, LLC (hereafter Yellow Pine) submitted its original application for an air quality permit to construct and operate a 110-megawatt (Mw) biomass-fired power plant. The facility was also to be located at Georgia Highway 39 in Fort Gaines, Clay County.”

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.